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Showing contexts for: temple trusts in K. Kumara Gupta vs Sri Markendaya And Sri Omkareswara ... on 18 February, 2022Matching Fragments
4.8 It is further submitted that the Temple Trust never objected at any stage of auction or after the auction until the order/judgment dated 02.02.2018 was rendered by the learned Single Judge. It is submitted that the Executive officer of the Temple, who was aware of the entire proceedings including conducting of the public auction and after receiving the full and total consideration could not have challenged the judgment and order passed by the learned Single Judge rendered on 02.02.2018 at a belated stage, i.e., almost after twenty years from the date of the execution of the sale deed. It is submitted that filing of an appeal by the Temple Trust against the judgment and order dated 02.02.2018 before the Division Bench without any allegation of fraud or collusion against it reeks of mala fides and collusion, which ought not to have been allowed. In fact, the Division Bench of the High Court ought not to have entertained the same, is the submission. 4.9 Making the above submissions, it is urged that the Division Bench of the High Court has committed a grave error in quashing and setting aside the sale in favour of the appellant after a period of 23 years and when the appellant had paid the entire sale consideration on 30.12.1998 and was put in the possession on execution of the sale deed. It is contended that the Division Bench of the High Court has not properly appreciated the fact that as such the sale was confirmed in favour of the appellant after the approval by the competent authority of the Endowments Department.
7. Heard the learned counsel appearing for the respective parties at length.
8. At the outset, it is required to be noted that by the impugned judgment and order, the Division Bench of the High Court has ordered re-auction of the land in question by fixing the upset price more than what has been fixed earlier by observing that since more than 20 years have elapsed from the date of the issuance of G.O. dated 26.11.1999, it is in the interest of the Temple that the property in auction is put to re- auction. However, it is required to be noted that the appellant purchased the property in question in a public auction, which took place on 24.06.1998. He was found to be the highest bidder, who offered Rs.13,01,000/- per acre. It is also required to be noted that in the said auction, which took place on 24.06.1998, in all 45 people participated. The auction was conducted after following due procedure under the provisions of the Act of 1987 and the auction was conducted by none other than the Executive Officer of the Temple Trust. It is also to be noted that after receiving a detailed report of Assistant Commissioner of Endowments, office of the Commissioner, Endowments Department vide order dated 22.12.1998 confirmed the sale in favour of the appellant. Consequently, the appellant deposited the balance amount. The sale deed came to be executed in his favour vide Sale Deed dated 31.12.1998. Even thereafter on the application made by the Executive Officer of the Devasthanam/Temple, the Income Tax Department granted Clearance Certificate to the Executive Officer on 12.01.1999. Therefore, as such the sale, which was held and confirmed in the year 1998 and for which the sale deed was executed on 31.12.1998, the Division Bench of the High Court has ordered re-auction of the property in question after a period of more than 23 years solely on the basis of the offer made by one Shri Jagat Kumar in the year 1998 (after the public auction was concluded) and the offer made by one Shri L. Kantha Rao that they are ready to offer / pay a higher price than fetched in the public auction already concluded and therefore, the Division Bench of the High Court has presumed that the value of the property must have been much more than the sale consideration realized in the public auction. However, the Division Bench of the High Court has not at all appreciated and considered the lack of bona fides on the part of the said Shri Jagat Kumar and even Shri L. Kantha Rao. It is to be noted that though in the month of July, 1998, i.e., after the public auction was held, the said Shri Jagat Kumar, who even did not participate in the auction proceedings initially came out with a case that he was ready and willing to pay a higher price for the auctioned land. But subsequently, he backed out and did not deposit any money. Neither did the said Shri Jagat Kumar nor Shri L. Kantha Rao had participated in the auction proceedings and made any offer. Therefore, as such both of them ought not have been permitted to raise any objection subsequently on the valuation when they had not participated in the public auction and made any offer. The Division Bench of the High Court ought to have considered whether these subsequent objectors had acted in a bona fide manner. At this stage, it is required to be noted that even Shri Jagat Kumar subsequently did not prosecute the matter further and subsequently it was only Shri L. Kantha Rao, who filed the revision before the Government by way of a “Public Interest Litigation”. It is also to be noted that neither the Government nor even the Division Bench of the High Court have given any finding that the auction, which was conducted/held on 24.06.1998 was in any way irregular and/or illegal. Even the Division Bench of the High Court has as such not set aside the auction/sale in favour of the appellant, however, it has ordered re-auction by observing that as Shri L. Kantha Rao deposited a sum of Rs. 30 lakhs pursuant to the interim order passed by the High Court in Writ Petition No. 41 of 1999 and as even the learned Single Judge had also directed the appellant to pay a total sum of Rs. 30 lakhs, which the appellant had agreed, the Division Bench of the High Court has observed that the value of the property can be said to be much more than what was realized in the public auction.
8.8 Now, in so far as the submission on behalf of the respondents that the value of the property as on today is Rs. 15 crores approximately and therefore in the interest of the Deity/Temple, the impugned judgment and order passed by the Division Bench of the High Court may not be interfered with by this Court is concerned, it is to be noted that by the passage of time the value of the property is bound to increase. In the present case, subsequent to the auction and the sale, more than 23 years have passed, therefore, whatever was the value in the year 1998 would not be same at a future date and that too, after 20-23 years. What is required to be considered is, at the relevant time, when the sale was conducted, what was the value of the land/property. Learned Senior Advocate appearing on behalf of the respondents are not in a position to point out any material on which it can be said that what was offered by the appellant in the year 1998 was not a fair value. The base price was Rs.4,00,000/- per acre in the public auction, in which 45 persons participated and what was offered by the appellant, i.e., Rs. 13,01,000/- per acre was much higher than the base price. Under normal circumstances, unless there are allegations of fraud and/or collusion and/or cartel and/or any other material irregularity or illegality, the highest offer received in the public auction may be accepted as a fair value. Otherwise, there shall not be any sanctity of a public auction. 8.9 By the impugned judgment and order by ordering re-auction, the Division Bench of the High Court has permitted both, the appellant as well as the original writ petitioner to participate in the re-auction. It is to be noted that as such the original writ petitioner never participated in the public auction, which was conducted/held on 24.06.1998. Therefore, by such a liberty being granted, the High Court has given one another opportunity to the original writ petitioner, who has died, and/or to his heirs to participate in the re-auction, which liberty could not have been reserved. As a result, the writ petition filed by the deceased petitioner Shri L. Kantha Rao has ceased to be a “Public Interest Litigation” but it is a litigation with a private mala fide interest as the original writ petitioner had no locus to file such a case, not being a participant in the auction and being unable to point out any irregularity or illegality in the auction. 8.10 Even the Division Bench of the High Court ought not to have passed the impugned judgment and order in an appeal preferred by the Temple Trust for the simple reason that it was the Executive Officer of the Temple Trust, who had conducted the auction; it was the Executive Officer, who had obtained the Clearance Certificate from the Income Tax department and who executed the sale deed in favour of the highest bidder – appellant herein. At no point of time till the judgment and order was passed by the learned Single Judge, the Temple Trust had challenged the auction/sale on the ground that the amount realized was inadequate. Therefore, the Temple Trust could not have challenged their own decision, which they had never challenged earlier. 8.11 Similarly, the appeal preferred by the heirs of Shri L. Kantha Rao also ought not to have been entertained. Shri L. Kantha Rao never participated in the auction. He never submitted any offer. The proceedings initiated by Shri L. Kantha Rao was in the nature of a Public Interest Litigation and therefore being heir of Shri L. Kantha Rao, his wife could not have been permitted to prosecute further with the Public Interest Litigation.
9. In view of the above and for the reasons stated above, the impugned judgment and order passed by the Division Bench of the High Court is unsustainable and deserves to be quashed and set aside and is accordingly quashed and set aside. The judgment and order passed by the learned Single Judge in Writ Petition No.25407 of 1999 is hereby ordered to be restored. However, as the appellant had agreed to deposit the balance amount of Rs.6,45,190/- being the balance of Rs. 30 lakhs and considering the fact that the respondent is a Temple Trust / Devasthanam, we direct the appellant to pay to the respondent – Temple Trust / Devasthanam a further sum of Rs. 15 lakhs (Rs.6,45,190/- plus interest from 1998), to be paid by the appellant to the respondent – Temple Trust /Devasthanam by demand draft /banker cheque within a period of two weeks from today and take all consequential steps pursuant to the auction/sale being confirmed in his favour including getting registration of the sale deed in his name and taking possession of the land in question in case the same have not yet taken place till date.